Today, I had just started my virgin investment in one of the REITs in Singapore. The REITs is call SoilBuild Business Space REITs. Well it might be a bad call for me to invest REITs at this moment and also there are debts due in 2015 for this REITs, however I believe that this REITs will grow because it start listed in 2013, which is quite new and there are certainly room for improvement, secondly is because of the nature of business as it shifted to business industry for it's properties like DBS, A*Star and etc. All these big companies are renting space from this REITs.
On top of that, the maturity of the leasing contract had been renew in 2014, so is safe to say that it will continue to have occupancy rate as high as 99% to 100% for some buildings. Also, I take a look at the Singapore environment whereby there are more and more MNC coming to Singapore to setup their company/branch in Singapore. This certainly opens a new door to this REITs.
Of course, in 2015, the REITs will be facing the rise of the interest rate and also the debts due ($95m), well have to see how SoilBuild Business Space REITs handles this situation. In any case I purchase 6 lots for it which cause $0.785 per share so is less than $500 for testing out this new REITs.
Currently, I am waiting for the share price of telco company to go down in order to purchase as the new scheme being rolled out, there are many investors rush in to purchase blue chips stock which cause the share price to go up a bit. So probably I will have to wait for next week or the end of the month before purchasing all those stock that I have listed in this blog :D
One thing that attract me to this company is the building that they are holding or renting are quite nice :D
Hi James
ReplyDeleteI recently written a post on Reits regarding how they will fare in 2015, you may want to take a look if you are interested.
http://www.foreverfinancialfreedom.blogspot.sg/2015/01/relooking-underneath-behind-ratio-for.html
Soilbuild should be okay, their debts costs are about 3% and they split them rather well from 2015 to 2017 based on the link I've provided you above. Since you mentioned occupancy is healthy, then their earnings should stabilized.
Hi B,
DeleteThank you for your comment. I will go take a look at your article because I am still new to investment, it would be great for me to learn more through experience investor like yourself.
I will be setting up a section to collate all the blogs that are related to investment and I would like to put your blog link as one of them.
Just want to get your permission before doing that.
Thank you very much for the information :)
Hi James
DeleteThanks for the support.
Sure thing. I will add yours to my link as well. Keep in touch!!!